Report onUpgrading Filing System& indexing & developing HRIS in

Mostafa Group of Industries

Submitted ToMr. Tarique Hossain,

General Manager,HR & Admin,

Mostafa Group of Industries.

Submitted by-M. Umair Karim,

Intern,International Islamic university Chittagong (IIUC)

Date of Submission10th February 2012

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Executive Summary

Mostafa Group has been engaged in business since 1952 and developed the business activities in commercial Trading, import, export, manufacturing of steel products, Iron, MS Rod, Ship Breaking (Scraping of ocean going vessel), Artificial Leather, Rexine, Shrimp cultivation, processing & Export, Textile & Ready made Garments, Papers, Refining of Palm Oil, Soybean Oil, Coconut Oil, Vanaspati Ghee, Refine Iodized Salt, Tea Plantation & Export, Transport Sector, IT sector and also engaged in the financial sector such as Bank & Insurance , Health & Education sector .

Mostafa Group of Industries has been set up a Group of highly experienced, well-educated and financially sounds Bangladeshi promoters who have excellent track record in Industrial and trading business operation. They have gained commendable practical experiences in various type of manufacturing and trading business. At present Mostafa Group is one of the largest and leading private enterprise initiatives in Bangladesh.

Mostafa Group has a filing system that is quite conventional & does not provide a proper systematic approach. It maintains mostly hardcopies for filing and for inter departmental communication. The current filing system has several limitations & the officials have to take a lot of pain for finding the files and in accessing it. From this it was inferred that developing a new system that is based on software can be a good remedy that will ensure a symmetric arrangement of files in a central server that makes it accessible maintaining sufficient privacy. The new system can be designed by outsourcing it to an external firm.

The task from designing to implementation to monitoring will reside with IT department head & he will be helped by one executive from each department who will be responsible for filing their own department.

With the development of central filing system & indexing the privacy of HR documents will be lost and for ensuring its privacy and updating the HR practice HRIS software can be designed that will make the tasks of HRD easier without increasing the number of workforce of HRD. So the decision might be proved economic.

The two systems can’t be put into practice altogether. Rather it is to be implemented by decomposing the entire task into different segments that will make it easier for the administrators to look whether there is any gap between planning & its implementation. It will help to establish a system that can be carried out for a longer period of time that will make the practices of the entire group organized, systematic & balanced.

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Table of Contents

Name of Topic Page noExecutive Summary 2Table of contents 3Introduction 4Objectives of the study 5Methodology of the study 5Literature review 6Limitations of the study 7Current System of filing prevalent at Mostafa Group of Industries

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A critical evaluation of the current Filing System as compared to the Standard Filing System

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Up gradation of the current filing & indexing system (design & implementation)

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Conversion of HR practice of Mostafa Group of Industries to HRIS (Human Resource Information system)

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Phase wise planning for the implementation of Filing & indexing System & HRIS

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Ending Discussions & recommendations 20Glossary & references 21

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Introduction

While working in organizations in todays highly competitive & changing world people come across situations where they are to take decision which forces them either to stick to an existing practice system or to transform the practice system by getting into a new practice. The same is in the case with technology adoption.

Organizations do have a filing system. Everyone has a filing system no matter what whether it is organized or disorganized. With the development of technology the filing procedure is often maintained by using software in PCs (Personal Computers). Some people do it centrally whereas someone decentralizes to maintain this.

The local organizations in the country have been somehow quite reluctant to use technology to the fullest extent at the workplace. As a result of which the system of management becomes a bit disorganized with old school practices. Filing system & indexes are often used by many of the organizations but the problem often occurs with retrieving or finding the files when necessary. If not maintained systematically then there might be problems regarding its retention & effective use. So studies are carried out and must be carried out to show how important it is to have a filing system which is based on software that ensures its retention, timeliness, economy, classification etc.

Besides taking the concept of filing one must take into consideration the HR practices of the country. The concept of HRM is quite new in the country and the concept of HRIS (Human Resources Information System). HRIS is so new in our country that only students having courses of HRM becomes aware of the term. Many of the officials of an organization are still unaware with HRIS.

The study on HRIS needs to be carried out to show how the systematic arrangement of HR practices help organizations to achieve their goals & aligns itself to the business strategy that it pursues. HRIS –its knowledge, adoption, usefulness & process needs to be conveyed to people so that they utilize the benefits of HRIS to the optimum level.

The study carried out in this report the practice of filing & its updating at Mostafa Group of Industries. Besides it also suggests organizing its practices of HR into a sound and balanced HRIS practices that will benefit the organization to reduce its paperwork & the sensitive issue privacy can be maintained to the department. Its accessibility can also be ensured with the help of adoption of such type of system.

So basically such studies are needed to be carried out to inform the usefulness of adopting technology at workplace & suggests how quickly it can adopt and transform to a standard mode of practices.

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Objectives of the Study

The Primary objective of the study is to partial fulfillment of internship evaluation at Mostafa Group of Industries. The main objectives of the study are as follows-

To find the current practice of Filing System prevalent at Mostafa Group of Industries

A critical evaluation of the current Filing System as compared to the Standard Filing System

Up gradation of the current filing & indexing system (design & implementation) Conversion of HR practice of Mostafa Group of Industries to HRIS (Human

Resource Information system) Phase wise planning for the implementation of Filing & indexing System &

HRIS.

Methodology of the Study

The study has been conducted mainly with the help of primary data & as well as with the help of secondary data.

Primary Data Sources Observation Method Informal Interview with

o General Manager (HR & Admin),o Senior Executive (HR & Admin).

Secondary Data Sources Mostafa Group Website (www.mostafagroup.com) Google (several PDF files & websites), Existing memos used for filing, Filing index list provided by HRD.

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Literature Review-Some Basic Concepts

Filing-Filing is the concept of keeping the documents at a safe place where it is taken well care of & can be easily found. After a program is terminated it provides a process to store, retrieve & update the files. It is a central record keeping system arranged systematically & is transparent. Its access is not that difficult and is used when people work in groups.

Indexing-It is a device used to locate documents that has been filed. Indexing is an important aid to filing. Filing and indexing are so interrelatedThat filing without indexing is incomplete and indexing withoutFiling does not exist.Indexing is the process of determining the name, subject or other captionsunder which the documents are filed. Index is a guide to records. Themain purpose of an index is to facilitate the location of required filesand papers. Index helps the staff to find out whether a particular fileexists for a party or subject, and its place in the container. It alsofacilitates cross referencing. Where records are classified in numericalorder, or subject wise an index is necessary.

Essentials of a filing system-the characteristics of an efficient filing system are as follows-

Simplicity, Compactness, Flexibility, Retention, Accessibility, Economy, Safety, Timeliness, Classification.

Storage Place- In case of a digital filing system the files can be stored in the HDD, Floppy Disk, Optical disk, Flash memory or a file sever on a network protocol.

Method of Arrangement-Files can be arranged according to Subjects, Numbers, Alphabetical Order, Geographical order, Dates/Geographical order.

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Filing Process- The process of filing can be discussed in 2 ways.

Way 1- The steps are as follows-1. Receiving,

2. Action,3. Follow up,4. Collect Document to be filed,5. Filing.

Way 2-The steps are as follows-1. Separate work from the archival mode,2. Label work files,3. Choose location & fix,4. Arrange.

HRIS- HRIS is software that helps to keep track & record of the HR practices of a particular organization. It divides the works according to HR functions and provides access whenever necessary.

Methods of Filing System- An organization can choose anyone of the two for adopting a filing system. These are as follows-

1. Centralized filing System- In this system a central department or a separate department is there who ensures the efficient storage & retrieval of information when necessary.

2. Decentralized filing system - In this mode the department itself is responsible for filing. In this case one department is not liable for the storage and loss of information by the other department.

Limitations of the study

While preparing the report several difficulties had to be faced this might have hampered the quality of this report. The findings could have been better if these limitations could have been overcome. Although the obstacles might seem less in number but still the hindrances created by this small group was massive which has stopped to produce the quality of the report at the desired or optimum level. The obstacles those were faced while preparing the report are as follows-

Busy Schedule of the HRD, Lack of information, Lack of record keeping, Working with a newer concept, Disorganized record keeping.

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Summary of Findings

1. Current practice of Filing System prevalent at Mostafa Group of Industries-

Mostafa Group of Industries uses both softcopies & hardcopies to keep record of the files. But the group has remained with the old school basics of maintaining the records in printed form. Although it has a record keeping software but it still prefers to keep it safe with hardcopy storage. For softcopy storage Mostafa Group of Industries uses software named “DREAMAPPS”. The softcopy storage in the group is maintained by the department itself in the form of MS Word files. For dispatching the file to an external agency record is kept in with the group name followed by the office name & then the department followed by no of letter, month & year. It is done in the following manner-

MG/HO/Admin/17/03/2012

In the pattern quoted above the first thing that comes is the name of the group that is MG or Mostafa Group. The next thing in the pattern is the name of the office. i.e. HO or Head office. Then comes is the name of the department followed by the no of letter sent by that department for that particular month. The last two blocks are for the month & the year.For internal communication or ensuring the smooth running of information the departments send memos and keep track of it. No formal procedure is applied rather the memos are stored and tracked by the department itself.The files in the department are kept in the desks and piles and are stored in a separate storage according to the specification and requirements of that particular department. In case of factories the responsibility of the filing resides with the registrar of that factory who is also responsible for maintaining the records. Most of the departments so far have not felt the necessity for a central filing system & a more systematic procedure.

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2. A critical evaluation of the current Filing System as compared to the Standard Filing System-

As said in the literature review an efficient filing system ensures - Simplicity, Compactness, Flexibility, Retention, Accessibility, Economy, Safety, Timeliness, Classification.

If we take Mostafa Group of Industries into account from the characteristics said above it does not ensure anyone of the above apart from the point of retention. It does not provide a systematic access to the files to the concerned officials & at the time when needed its unsystematic maintenance does not provide its retrieval and update.

In an informal interview with the General Manager of HRD & Admin this point came out that the current practice of filing often causes quite a problem to trace, find & use. The main problem occurs during dispatching official letters as quite often the same serial no is allotted to the different official letters. This problem is more particular when external agencies are sent with official letters from different departments to different agencies. Even one department usually does not find any record whether any of the other department has already sent a letter to an external agency.

It is well known that without indexing the filing system is incomplete. The major reason for absence of a sound implementation of a filing system is the absence of indexing. Indexing insures the tracking of the stored file and after a file is stored in a filing system. So although filing system s prevalent at Mostafa Group of Industries but the absence of indexing that (the art of tracking) has made the practice less effective.

The case is particularly true if we take into consideration the factories located at distant places of Mostafa Group of Industries. The quality of filing maintained by the registrar needs an improvement which is a crying need of time.

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3. Up gradation of the current filing & indexing system (design & implementation)

The current practice of Mostafa Group of Industries needs to be improved and must be brought at an optimum level. Either the existing system must be raised to meet the function of smooth running or a new system must be developed which meets the expectations.

The Senior Executive (HR & Admin) said that factory is the place that is having a vital need for having a sound software based filing system because ultimately factory is the place where the seed for profit is sown. The Registrar can take the responsibility for filing in their respective factories.

One of the proposals that came out during conversation with General Manager (HR & Admin) is to maintain a central dispatch no that can be ensured with a central server which might ensure he smooth tracing & uses of those files. but in the case of update we need somehow a procedure that is more systematic from where we must come to a point that is not only more smooth rather it is updated with time & provide a more systematic in not only external dispatch rather in internal dispatches as well. So a new system must be designed that calls for organizing the internal dispatches that will allow Mostafa Group of Industries to convert its practices of old & conventional memos to the updated filing system. There will be a central tracking no along with department name, organization name and date. So the name of the file would be alphanumeric as a consequence it will be traceable easily & can be searched under different criteria. For sending a letter whether internal or external it must be sent & stored in the following manner that might look as a significant progress from the existing practice-

Format for storing & tracking Files in Mostafa Group of Industries

Department from

Department to

Date

Subject

Central Tracking No (auto generated having Alphanumeric code)

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Remarks (if any)

Name & code of maintainer

Body of the letter

Publish in all departments

Internal

External

Store only in central server

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Supervision of the system- The person who will be responsible for supervising the work of this filing system will be the IT manager as suggested by the Senior Executive (HR & Admin). He will administer the other departments work to see till which extent they are observing the filing system. His role will be advisory to make everyone working in every department to make them well acquainted with the system. His soldiers will be an entry level executive of every department who will file the documents and send it to the central system as all files will be stored in the central system. The software accessibility will be protected by a central password & will be only accessible to the selected employees from every department. For reviewing performance & deciding the approach the cross departmental team involved in filing should sit once a month to see whether there is anything that needs t be scrutinized. The up gradation of the system must not be late by more than 6 months.

Backup of the Filing System- One can not rest by launching a new system & have to discover ways for securing it. Converting to a software system poses three threats-

1. Threat of the system crash,2. Virus attack,3. Users’ unawareness might cause damage to the system.

So this calls for a protection of all files stored in the system so that files can be indexed even if the filing system collapses. The era in which we are dealing in Tera bytes then storing at a different safe zone must not be an issue of headache for the decision makers. One can make use of flash drives or other HDDs (Hard Disk Drives) to store. Till the time test running is successfully conducted till tat time the hardcopies are to be maintained.

Conveying the Need- The importance for development of filing system is o be conveyed to all the departments and the need for sticking to it is also to be conveyed. Because unless people believe that this filing will actually benefit them they would hesitate to use it and will not adopt properly. So for conveying the need properly the following 3 points is to be conveyed.

1. Problems with the current system,2. Requirement of a new system,3. Advantages of a new system,4. Limitations or shortcomings of the new system.

Training for Departments- The new system will have to be taught to all the HODs (head of the Departments) & to all the people who are going to use it. An effective training will make them understand the entire system & will drive them to use it because of its improved efficiency.

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Discussing & taking Feedback from all HODs- The Chairman, Managing Director, all of the department heads should be consulted prior to designing of the new filing system and they will provide feedback why the previous system should be continued or dropped & what they would like to see in an improved system. This feedback will allow to catch the shortcomings of the “would be” designed filing system & will help to upgrade the design itself before it is actually designed.

Designing the system- There are two systems that are to be designed.

1. the filing system & index,2. The HRIS software that comes in the next chapter.

Outsourcing is a better option for designing the filing & indexing system and also the HRIS. It is because of the fact that outsourcing these two tasks to an external agency will benefit Mostafa Group of Industries in the following manner-

1. The external agent will be more professional & experienced in designing the system,

2. Outsourcing to an external firm will not disturb the workflow of the company.3. Quite often cost of outsourcing is less than that of producing it.

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4. Conversion of HR practice of Mostafa Group of Industries to HRIS (Human Resource Information system)-

In the current system the HR documents are stored separately in the department in departmental PCs (Personal Computers) & in stores. But if we now convert into a central digital filing system then many rather most of the HR documents will go to the central documents as filing system will be maintained. So when it goes to the central server then definitely the secrecy of these HR documents & departmental privacy will be disturbed. Many of the sensitive documents which are of HR departments internal use only goes to the central server which definitely affects the departmental running & many of the hidden terminologies & policies goes to the other departments because of implementation of filing system. So the HR practices of the relevant department i.e. HR & Admin needs to be separated from the central system & a separate system for this department can be devised which will not only maintain the secrecy of the system rather it will ensure a more systematic practice of HR that will perhaps be better aligned with the organizational strategy. This although will generate some costs in its development & maintenance but still it will help the organization to save costs in the form of less employee requirements because of possessing an organized system. If HRIS software is adopted then the workforce in HRD will not be needed to be expanded as departmental software storage makes works easier & more accessible which reduces the paper work significantly. On the whole, these ERP systems have their origin on software that integrates information from different applications into one universal database. HRIS is no longer a “nice to have condition” rather it’s a necessity. In return it will help to keep record of the human capital.i.e. the amount company is investing on an employee & the return he is generating for the company.

Requirements for HRIS- The HRIS software will have to be decomposed according to the HR functions & policies. It will ensure a systematic storage & will ensure easy access on daily basis as most of the HR functions need to be carried out on daily basis. So the functions according to which the HRIS will have o break down are as follows-

1. HR policy & Planning,2. Recruitment & selection,3. Training & development,4. Performance Appraisal,5. Compensation Policy & records,6. Benefits,7. Promotions, Leaves & transfers,8. Disciplinary actions.

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The type of Documents that goes to HRIS- The file types that go to HRIS are as follows-

1. HR Planning,2. Job description,3. HR requisition,4. Recruitment policy,5. Promotion policy,6. Temporary Employment,7. Contractual Labor,8. Employee position-corporate office schedule,9. Local Training,10. Pay & Benefits,11. Cell Phone Policy & allotment,12. Retirement,13. Resignation,14. Termination/Termination,15. Disciplinary Measures/Charge Sheets,16. Enquiry,17. Dismissal,18. Bonus rules related matters,19. Allowance/Fringe benefits,20. Labor situation,21. Gratuity Scheme,22. Provident Fund Scheme,23. Annual/Special Increment,24. Clearance Report,25. Job Allocation of HR & Admin Division,26. Overtime,27. Late Attendance,28. ACR,29. Promotion,30. Leave matters,31. Procurement rules,32. Working hours & office timings.

Strengthening the HRIS process-1. Build HRIS leadership using a participatory, inclusive approach that

incorporates a thorough assessment of any related systems already in use2. Improve existing systems as needed to support an HRIS — networks, Internet

connectivity, hardware, software, trained personnel, technical support, and electrical supply

3. Develop HRIS software solutions customized to answer the key health workforce policy and management questions identified as critical for that country

4. Support managers and decision -makers to use and analyze data for informed and confident decision-making

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5. Ensure sustainability and continuous improvement - of the HRIS through training and technical support to build capacity in the country to independently support, use, and improve the HRIS into the future.

Key Questions to ask-

According o www.humanresources.about.com Following are the key questions to ask and answer in the process of selecting Human Resources information technology.

What is the degree of flexibility and scalability that the HR information technology software provides? HR professionals should determine if the software can import data from multiple Excel spreadsheets, databases, and paper documents and the level with which it can interface with all kinds of systems and data.

The software should be able to take in and filter information from multiple sources. Ideally, this process should also be automated. Many online enrollment solutions require that data be manually manipulated before it can go to a carrier to update their systems. Automation of the update format, transmission schedule and delivery method can help to eliminate billing and eligibility issues.

Will the software be able to accommodate HR’s company and benefits carriers’ rules? A truly capable enrollment engine will evaluate each enrollment activity and apply any necessary combination of rules, messages, prompts, and options specifically designed to meet the exact eligibility requirements desired. The software should accommodate any eligibility rules that the company and carriers have.

Will the HR information technology be able to grow and scale with the organization? HR should assess the technology’s ability to grow as the company brings on new employees, offices, benefits changes, and rules. HR should ask about the thresholds for each of these elements.

Is the HR information technology software able to integrate with other systems? Payroll and other functions often share much of the same information as benefits

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management. HR can obtain greater efficiencies when data and other employee information entered into one system can be shared with another system.

Who is responsible for implementing, or building, the solution? What level of training is involved? Some solutions require the client to be very involved with the initial implementation, which can be overwhelming for already busy HR administrators.

HR should have a clear understanding of the level of training and technical expertise that will be required and the amount of time expected. Questioning solution providers on this topic can provide insight into subtle areas that might initially appear simple, yet involve significant technological expertise. HR can then determine specific tasks that may be so cumbersome as to realistically impede completion, potentially reducing HR information technology value and ROI.

If training is involved, is there a charge? Costs of training should also be assessed - including time away and travel expenses for off-site travel. HR needs to become aware of all hard and soft costs involved in the HR information technology adoption.

Who will own the data? The answer to this question should be the Human Resources organization. Companies should be able to transport their data to any Application Service Provider (ASP). If the data resides on a carrier’s proprietary server, the company may sometimes be charged additional fees should it switch carriers.

What types of maintenance and upkeep are required? When software is installed on a company’s on-site workstations or servers, regular updates to that technology are often required and may be cumbersome to plan for and manage. Updates to HR information technology are often made automatically with software available online through an Application Service Provider (ASP) or Software as a Service (SaaS) model.

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What security measures are built into the HR information technology? If the software is available online, through an ASP or SaaS model, the provider should offer daily backups, backup servers, and added protective layers. Additional systems and procedures should be in place to safeguard information from being lost or accessed by unauthorized personnel. HR, in consultation with other managers, should have exclusive authority to decide who will be allowed access to the HR information technology and to what degree.

Will employees be able to enroll in benefits plans and make changes in real-time to their personal data and plan choices? Employee access should be a given, considering the widespread, general access to computers; 70% of the population has Internet access at home. Employee self-service provides huge potential to save time and money. A good self-service system will guide employees smoothly through entering information about themselves and their dependents.

The system should clearly present the plans available and enable employees to make selections at their convenience, simplifying these actions throughout the process with wizards. Employees should also be able to add dependents and change information as necessary, 24 hours a day, seven days a week.

The Human Resource Information System (HRIS) is a software or online solution for the data entry, data tracking, and data information needs of the Human Resources, payroll, management, and accounting functions within a business. Normally packaged as a data base, hundreds of companies sell some form of HRIS and every HRIS has different capabilities. Pick your HRIS carefully based on the capabilities you need in your company.

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5. Phase wise planning for the implementation of Filing & indexing System & HRIS-

Indeed it’s easier said than done. To implement & adopt a software based system converting from a conventional system would not be easy. But if planned and approached well then this difficulty can be met without much difficulty if cooperation from all corners is ensured. A guideline can be left which might help Mostafa Group of Industries to convert & move with the new systems practices. Simultaneously both filing system & HRIS should not be implemented. HRIS is for HR & Admin department whereas filing system & indexing is for the entire organization. Although planning for both may start together but the time required for implementing filing system will take longer time than that of HRIS because the filing system & indexing is more complex in design than that of HRIS. The phase wise planning can be laid down as under-

1. Planning for conversion to HRIS by the entire HRD and seeking cooperation from Chairman & Managing Director where required,

2. Gradual conversion to HRIS. During conversion to the new system the records has to be maintained in the old system till the time entire system is successfully transformed,

3. Arranging the files and segments systematically while designing the HRIS software. Cooperation is to be provided to the software designer,

4. Planning for converting to the Filing system & cooperation from all corners to be sought,

5. Having sessions with all concerned departments.i.e. With the “would be” users of filing system & taking feedback from them how to design it more conveniently,

6. Conversion to new filing system,7. Training to the concerned for using the HRIS & the Filing system,8. Feedback,9. Update according to requirements.

The timeframe is to be decided by the concerned officials or the department heads & the organization figurehead & according to the urgency of the situation.

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Ending Discussions & Recommendations

The beautiful & well designed office is futile unless its residents are smart. So Mostafa Group of Industries has to make its employees smarter in adapting with the changes to cope up with the ever changing need of the competitive market. So to progress it has to make certain changes in its practices. i.e. It has to change its record changing mode. So on the basis of findings following recommendations can be made-

The existing recordkeeping for filing is not that systematic and very much conventional,

The limitations of the existing system have necessitated the upgrading of the existing system. So a new system is preferable.

A new filing system should be designed & for designing it should be outsourced but it is to be maintained & reviewed by the internals. It will remain under the supervision of the IT manager.

The conversion to the filing system poses threats to the secrecy of files of HR & Admin department. So to maintain the secrecy and upgrade the HR practice of Mostafa Group of Industries HRIS software is to be designed by the HRD & to be updated with time.

Phase wise planning & adoption will allow to systematically design & prepare the employees to use the newly designed system.

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Glossary & references-1. Mr. Tarique Hossain, General Manager, HR & Admin,2. Mr. Alauddin. Senior Execuive, HR & Admin,3. Google,4. www.mostafagroup.com 5. www.humanesources.about.com 6. Filing.pdf7. Peggy_Duncan_COPE_WorkPak_Instructions_for_File_20Index8. Filing index list provided by HRD9. Wikipedia10. www.capacityplus.org 11. Office memos of Mostafa Group of Industries

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